Cyprus says Greek-owned banks not affected by possible bank crisis in Greece

Cypriot banking authorities on Friday said banks of Greek ownership operating in the eastern Mediterranean island are not affected by a possible banking crisis in Greece.

The European Central Bank was reported to have told a Eurogroup meeting on Thursday that it was not clear whether Greek banks would be open on Monday, following the withdrawal of 2 billion euros (2.26 billion U.S. dollars) by Greek depositors over the last three days.

The Central Bank of Cyprus (CBC) said that Greek subsidiary banks operating in Cyprus face no risks from the uncertainty concerning the Greek bailout talks.

"There is no danger concerning the Greek banks, which are licensed in Cyprus," a CBC official was quoted as telling the Cyprus News Agency.

He said that CBC monitors the banks on a daily basis and it did not notice any noteworthy deposit outflow. The official added that the Greek-owned banks have no significant exposure in Greece.

Cypriot Finance Minister Harris Georgiades said in a separate statement to state radio that Greek-owned banks "are essentially Cypriot banks with own capital, sufficient liquidity and no exposure in Greece."

"The fact they are of Greek interests does no change their status," he said.

There are four Greek subsidiary banks operating in Cyprus, Alpha Bank Cyprus, Eurobank Cyprus, National Bank of Greece and Pireaus Bank.

All banks, including Greek owned banks, had in the past invested heavily in Greek bonds and suffered huge losses when the Greek sovereign debt was devalued by almost 75 percent in 2012.

Local banks were resolved when Cyprus was bailed out by the Eurogroup and the International Monetary Fund in a 10-billion-euro assistance program in March, 2013.

Bank of Cyprus had to recapitalize by converting 47.5 percent of deposits over 100,000 euros into equity in the world's first bail-in and Cyprus Popular Bank was wound down and folded into Bank of Cyprus. (1 euro = 1.13 U.S. dollars) Endit